A Cap Table, or Capitalization Table, can significantly impact the valuation of a company. It lists all the owners of a company and the percentage of the company each owns. This distribution of ownership can affect the company's valuation in several ways. For instance, if the founders retain a majority of the shares, it can lead to a higher valuation as it shows confidence in the company's future. Conversely, if a large portion of the company is owned by investors, it might indicate that the company is heavily reliant on external funding, which could potentially lower its valuation.
Ever wondered why some companies stay under the control of their founders, while others shift into t...
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